Search smh:

Search in:

AGL's purchase of Loy Yang suspended by watchdog

The competition watchdog has suspended its clearance process for AGL Energy's purchase of Australia's largest brown coal power station.

The Australian competition and Consumer Commission (ACCC) had told AGL the clearance process for its acquisition of the Loy Yang power station and adjacent coal mine would be suspended until the watchdog received further information from AGL, the company said on Wednesday.

The ACCC previously had asked AGL to provide the information by April 18, AGL said in a statement.

AGL already owns 32.5 per cent of Loy Yang, which provides a third of Victoria's power.

Advertisement

It intends to buy the other 67.5 per cent from Japanese utility Tepco, which needs funds after being rocked by last year's nuclear disaster, Thai-owned Ratch Australia, and three super funds.

The purchase requires the ACCC to remove Federal Court undertakings that limit AGL's ownership of the Loy Yang to 35 per cent.